What is Olaplex Holdings Probability of Financial Distress (%)?
Probability of Financial Distress (%) measures the probability that a company will go bankrupt in the upcoming year given its current financial position. A higher ratio indicates a larger probability of bankruptcy for the company, while a lower ratio indicates a healthier fundamental. As of today, Olaplex Holdings's Probability of Financial Distress (%) is 0.13%.
Like the Altman Z-Score, the PFD measures a company's bankruptcy risk. However, the main drawback of the Z-score is it does not apply to banks and insurance companies. According to Investopedia, the concept of "working capital" does not apply to banks and insurance companies, as financial institutions do not have typical current assets or current liabilities like inventories or accounts payable.
Competitive Comparison of Olaplex Holdings's Probability of Financial Distress (%)
For the Specialty Retail subindustry, Olaplex Holdings's Probability of Financial Distress (%), along with its competitors' market caps and Probability of Financial Distress (%) data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Olaplex Holdings's Probability of Financial Distress (%) Distribution in the Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Olaplex Holdings's Probability of Financial Distress (%) distribution charts can be found below:
* The bar in red indicates where Olaplex Holdings's Probability of Financial Distress (%) falls into.
Olaplex Holdings Probability of Financial Distress (%) Calculation
Probability of Financial Distress (%) (PFD) was developed by John Campbell, Jens Hilscher and Jan Szilagyi in their Search of Distress Risk. It measures the probability that a company will go bankrupt within the next 12 months given its current financial position.
The Probability of Financial Distress (%) was obtained by a logit probability model based on eight explanatory variables. The logit formula to compute the probability of financial distress (LPFD) is given below:
| LPFD | = | -20.12 * NIMTAAVG | + | 1.60 * TLMTA | - | 7.88 * EXRETAVG | + | 1.55 * SIGMA | - | 0.005 * RSIZE | - | 2.27 * CASHMTA | + | 0.070 * MB | - | 0.09 * PRICE | - | 8.87 |
| = | -6.62 |
The Probability of Financial Distress (%) (PFD) was then obtianed by:
| PFD | = | 1 | / | (1 + e^(-LPFD)) | * | 100% |
| = | 0.13% |
The eight explanatory variables are:
1. NIMTAAVG = Net Income to Market Total Assets
*Note that for companies reported quarterly, geometrically declining weighted quarterly Net Income data in latest four quarters are used.
2. TLMTA = Total liabilities to Market Total Assets
3. CASHMTA = Cash to Market Total Assets
For non-financial companies, CASHMTA is measured as:
4. EXRETAVG = Excess Return compared to the S&P 500
EXRETAVG is the weighted excess return compared to the S&P 500 in past 12 month. Geometrically declining weights are imposed on the monthly excess return to reflect lagged information. The weight is halved each quarter.
5. SIGMA = Standard Deviation of Daily Returns
For sigma, we use the annualized standard deviation of a company's returns over the past 92 days (or 63 trading days).
6. RSIZE = Relative Size
| RSIZE | = | log (Market Cap | / | Total Market Cap of S&P 500 companies) |
7. MB = Market to Adjusted Book Equity Ratio
8. PRICE
PRICE is measured as the log of the stock price, capped at log(15).
Olaplex Holdings (Olaplex Holdings) Business Description
Traded in Other Exchanges
N/A
Address
1187 Coast Village Road, Suite 1-520, Santa Barbara, CA, USA, 93108
Olaplex Holdings Inc is a science-enabled, technology-driven beauty company. It offers science-backed solutions that improve hair health. It identifies consumers' most relevant haircare concerns in collaboration with the community of professional hairstylists and consumers and strives to address them through its proprietary technology and innovation capabilities. It offers products through a global omnichannel platform serving the professional, specialty retail, and DTC channels. The company derives its revenue through the sale of its specialty hair care products.
Executives
| John P Bilbrey |
director |
|
| Advent International Gp, Llc |
director, 10 percent owner |
800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199 |
| David M Mussafer |
director |
C/O ADVENT INTERNATIONAL CORP, 75 STATE ST 29TH FLOOR, BOSTON MA 02104 |
| Tricia Glynn |
director |
C/O ADVENT INERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199 |
| Michael James White |
director |
C/O ADVENT INTERNATIONAL, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199 |
| Eric Tiziani |
officer: Chief Financial Officer |
1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108 |
| Kristi A Belhumeur |
officer: See Remarks |
6312 S FIDDLERS GREEN CIRCLE, SUITE 200N, GREENWOOD VILLAGE CO 80111 |
| Morfitt Martha A M |
director |
P.O. BOX 1441, MINNEAPOLIS MN 55440-1441 |
| Advent International Corp/ma |
director, 10 percent owner |
800 BOYLSTON STREET SUITE 3300, BOSTON MA 02199 |
| Advent Partners Gpe Ix-b Cayman Limited Partnership |
director, 10 percent owner |
C/O ADVENT INTERNATIONAL CORPORATION, PRUDENTIAL TOWER, 800 BOYLSTON STREET, BOSTON MA 02199-8069 |
| Emily White |
director |
C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7 |
| Christine Dagousset |
director |
9 W 57TH STREET, C/O CHANEL, NEW YORK NY 10019 |
| Tiffany Walden |
director, officer: See Remarks |
1187 COAST VILLAGE ROAD, SUITE 1-520, SANTA BARBARA CA 93108 |
| Paula Zusi |
director |
481 MYRTLE AVENUE, OCEANPORT NJ 07757 |
| Janet Gurwitch |
director |
1284 NORTH TELEGRPAH, MONROE MI 48162 |
Olaplex Holdings (Olaplex Holdings) Headlines
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